US Government to spend $123.5 million on blockchain by 2022

According to a recent IDC report, The U.S federal government is likely to increase its spending in the blockchain industry over the next three years.

The report, IDC Government Insights, states that US government is expected to raise its blockchain spending to $123.5 million by 2022. This would be equivalent to a 1,000 percent increase in spending compared to $10.7 million spent in 2017.

This spending will not only be on a federal level but state and local. State and local governments expected to increase spending from $4.4 million in 2017 to $48.2 million in 2022.

According to the report, government spending in the part has been in simple and basic use of blockchain technology. The next phase of heavy investment is expected to evolve and expand to a more complex use of DLT.  IDC’s research director Shawn McCarthy explained this in a statement, ““We believe asset management, identity management, and smart contracts will be the leading blockchain solutions for government. Early spending will focus on supply chain and asset management solutions, while spending in later years will expand to include more identity management and complex financial transactions.”

The IDC report also made states that DLT is on the verge of becoming a cornerstone technology for trade legislation, and it is on its way to getting “implemented as a standard feature for some types of authorized international trade and also as a standard for many types of government procurement.”